SHERMAN, Texas (KTEN) — The Sherman Independent School District Board of Trustees approved the biggest tax rate decrease in more than two decades on Monday night.

The board agreed to lower the property tax rate to $1.2365 per $100 of property valuation, a drop of 18.5 cents from the 2022 property tax rate. This is the fifth year in a row that the district has voted to decrease the tax rate.

The decrease is made possible by a state budget surplus.

"We've been talking about property tax relief for quite some time," said Sherman ISD Superintendent Dr. Tyson Bennett. "So now to have a surplus of about $34 billion in the last legislative session, our lawmakers used that surplus to buy down the property tax rate."

According to board president Brad Morgan, the tax rate is something the district took into account when planning their 2023 bond.

"We anticipated being able to do this before the state took any action," Morgan said. "We were passing a $540 million bond with the anticipation that we were going to try to lower rates at this point in time."

In November, Texas voters will decide on a constitutional amendment to increase homestead exemptions, which would drop taxes even more.